Monday, May 10

Small Canadian businesses face huge accumulated debt | The Canadian News

Rodrigo Diaz M.

According to a new report, Canadian small businesses now collectively owe more than $ 135 trillion as they fight to survive the pandemic. This is a gigantic debt that could harm the economic recovery of the country.

The Canadian Federation of Independent Business (CFIB) revealed that a small business owner has accumulated an average of about $ 170,000 in debt, with companies in the hospitality, leisure and service sectors. the most indebted.

Laura Jones, executive vice president of the CFIB, stated that the amount of debt that companies accumulate has grown significantly in the last six months and that the second wave of COVID-19 and the restrictions that accompany it are posing a huge obstacle to the already slow recovery of small businesses.

The CFIB report notes that three-quarters of business owners who have gone into debt say it will take more than a year to repay loans, and 11% express concern that they will never be able to repay their debt related to COVID-19.

Taylor Matchett, a research analyst at the CFIB and lead author of the report, says that companies are more fragile now than at the beginning of the pandemic, and that everything possible must be done to keep businesses open while the health implications of the virus are managed. .

Leave a Reply

Your email address will not be published. Required fields are marked *